Current Events in July 2023

The American home is quickly filling up with “smart” devices and appliances that can be controlled with a smartphone.

They are no doubt handy. Thermostats can be controlled remotely, as can garage doors, refrigerators, and surveillance cameras. But because these devices all connect to the internet – part of the vast and still-growing Internet-of-Things (IoT) – they can be hacked, just like your PC.

Young consumers are among the most enthusiastic adopters of smart devices but are also among the most concerned about security. A recent survey conducted for Blackberry found 44% of Gen Z respondents and 42% of millennials have taken extraordinary steps to prevent hacking. 

They don’t connect their devices to the internet, which negates some of their benefits. Only 14% of baby boomers have disconnected their devices.

Just how widespread are hacking attacks on IoT devices? More than you might expect. While you might have a couple of layers of security on your PC you might have little to no protection for your thermostat.

A study cited by CBS News found an estimated 12,000 hack attempts each week on smart devices in American homes. The potential danger is not inconsequential.

Potential dangers

For example, cybersecurity experts say a hacker who breaks into your child’s baby monitor can watch your child. Got a smart speaker? A clever hacker can turn it into a listening device.

If you have surveillance cameras throughout your home they can break into the cameras and watch everyone in the family. If they are particularly twisted they could raise and lower the temperature in the house and turn appliances on and off.

If a hacker can get into one of your smart devices then they can probably get to your router, breaking into computers and tablets that are connected to the internet. 

Security experts say that in many cases, smart devices are vulnerable because consumers don’t think about them being connected to the internet and pay little attention to security. Even if they take proper step, threats can exist.

“It is worth noting that most IoT devices utilize open-source operating systems and are built upon readily available hardware and networks,” Fariha Rizwan, the CIO of Z2C Limited, a venture catalyst, told ConsumerAffairs. “Unfortunately, the inherent vulnerabilities inherent in open-source software further increase their susceptibility to potential attacks.”

What to do

To increase security, take an inventory of all IoT devices in your home. Don’t leave anything out.

Then, each device needs a unique and secure password. The device will come with a default username and password. Change both.

Smart devices have operating software. Make sure you have the latest version, just like you would for the PC’s browser. 

“Regularly updating the software of Internet of Things devices is crucial, as it ensures the inclusion of the latest anti-malware and antivirus safeguards,” Rizwan said. “Additionally, such updates help rectify any security vulnerabilities present in older software versions. Given the relentless advancements in hacking techniques, it is imperative to remain vigilant and consistently update software, thereby fortifying oneself against potential external threats.

If you have a number of smart devices in your home it might be wise to upgrade your router with a strong firewall that can deflect an attack. Having good security software on your PCs and tablets can also alert you to unusual activity on your system.

In order to enhance competition and protect consumers – especially at the grocery store – the United States Department of Agriculture (USDA) and attorneys general in 31 states and the District of Columbia have formed a partnership to tackle anti-competitive practices.

The goal of the initiative is to put pressure on the food industry to prevent price gouging and expand choices.

The partnership was announced at the White House Competition Council meeting, which marked President Biden's Executive Order on Promoting Competition's second anniversary.

“The Biden-Harris Administration is committed to addressing corporate consolidation and its negative effects on the U.S. economy, such as unfair competition and increased prices,” said Agriculture Secretary Tom Vilsack. 

“By placing necessary resources where they are needed most and helping states identify and address anticompetitive and anti-consumer behavior, in partnership with federal authorities, through these cooperative agreements we can ensure a more robust and competitive agricultural sector.”

In addition to the food segment, the Biden administration also announced that it will strengthen the enforcement of laws prohibiting anti-competitive mergers in housing and healthcare.

Boots on the ground can make a difference

Having recognized how grocery prices affect consumers' perceptions of inflation, the Biden administration has prioritized food prices in its efforts to lower sky-high prices.

Having the White House and USDA in concert on this gives the partnership some serious muscle, but the real strength will be in the hands of the state attorneys general. 

Ultimately, this will result in fairer, more competitive markets and more resilient supply chains. Because those officials will have boots closer to the ground where consumer issues are happening, they should be able to assess situations quicker and improve coordination between federal and state agriculture and competition authorities.

However, the agency has picked a fight with a very formidable opponent. A joint investigation published by the Guardian and Food and Water Watch suggested that a handful of global giants control every single link of the food supply chain – all the way from the moment a seed is planted to when its bi-product shows up in a food product. 

“And that is not good news for consumers in terms of choice and real competition on prices, or for small and medium-sized farmers given little choice on what they grow or which animals they raise, while food industry workers face low pay and high risks,” the authors of The Guardian’s study said.

Earlier this year we noted that an increasing number of businesses were asking for a tip. It became so frequent that many consumers complained of “tipping fatigue.”

Since our story appeared, there has been no decline in tipping requests. In a new report, the Wall Street Journal concludes it is not employees who are asking for an extra payment – it’s the businesses they work for.

Tip requests have expanded far beyond restaurants and hair salons. Just making a purchase at a farmer’s market or a gift shop can carry the expectation of leaving a tip. It’s a practice many businesses encourage because they can avoid paying their employees more.

“The U.S. economy is more tip-reliant than it’s ever been,” Scheherezade Rehman, an economist and a professor of international finance at George Washington University told the Journal. “But there’s a growing sense that these requests are getting out of control and that corporate America is dumping the responsibility for employee pay onto the customer.” 

From the business’s point of view, encouraging tips for their employees may help them with retention. If employees' pay remains the same but they get a little something extra each week, the business can keep its prices low and maintain a competitive edge.

But some consumers say they feel uncomfortable when there’s a tip jar on the counter, or when they are promoted to pay a tip when entering their payment information.

A record number of employees get tips

The Journal cites a report from Paychex, a company providing payroll services to businesses, showing more employees are working in jobs where they get tips than at any time since the company began tracking that data in 2010. The report shows there was little increase in that number from 2016 to 2020.

Of course, in 2020 the COVID-19 pandemic hit and many consumers became increasingly generous, rewarding workers who had to be in a business location and often having to wear a mask all day. The pandemic may be over but the requests for tips continue.

While many consumers may be growing weary of the practice, Debby Mayne, etiquette guide for the resource website About.com, urges consumers to try to have a little empathy when they’re asked for a gratuity.

"The pizza delivery guy is out there braving the elements,” she told AARP. “There's a reason why you didn't go get that pizza yourself."

If the spring housing market was a bust for would-be homebuyers, the summer isn’t shaping up any better.

People who purchased a home in the last few weeks may be saddled with an average mortgage payment that has never been higher, according to real estate broker Redfin. Its report shows high home prices and an uptick in mortgage rates pushed the typical homebuyer’s monthly payment up to a record $2,656. 

Daily average mortgage rates are starting to moderate, thanks to cooling inflation, but Redfin says house payments are likely to remain elevated because even slightly lower rates may escalate competition for the few homes on the market and push up prices for the foreseeable future.

In a normal market, a decline in home sales would probably lead to some housing bargains. That isn’t happening because there is still strong demand for nearly every home that is on the market. Low inventory levels are keeping home prices from falling back to earth.

Redfin’s Homebuyer Demand Index, a measure of early-stage demand that tracks requests for tours and other buying services from Redfin agents, is up 2% from a year ago. Pending home sales are down 15% year over year, but new listings are down 25%, with homeowners who have a low mortgage rate reluctant to move.

The total number of homes for sale is down 16%, the biggest drop in a year and a half. For this time of year, there is an unusual decline in new listings.

Adjusting to higher mortgage rates

“Even though buyers are trepidatious about high mortgage rates, we’re seeing bidding wars in several pockets of the market because there are so few options and even fewer good options,” said Redfin Premier agent Jordan Hammond, of Raleigh, N.C. “Condos, townhouses and new construction homes are selling quickly, partly because they don’t require much work and people can’t afford to fix up a home when they have such high monthly mortgage payments.”

After over a year of high mortgage rates, Hammond says buyers have gotten over the shock and are adjusting to cutting expenses in order to pay their mortgage. He said they are also searching for smaller homes, and “thinking outside the box to reduce their monthly payments, doing things like rate buydowns or large down payments.”

The daily average 30-year fixed mortgage rate was 6.87% on July 19, down from a half-year high of 7.22% two weeks earlier. For the week ending July 13, the average 30-year fixed mortgage rate was 6.96%, the highest level since November.

Looked at your doctor’s bill lately? Painful, right?

Per enrollee spending by private insurance has grown more than 50% in the last 15 years and it’s not about to slow down any time soon. A new study suggests that your pocketbook and your stress over this whole matter are going to suffer like they never have before, too. 

While the Biden administration is beginning to regulate things like predatory medical credit cards, millions of people still need immediate help navigating confusing insurance policies, billing processes, and a lack of clear communication.

To help fill this gap, the U.S. PIRG Education Fund and Community Catalyst have co-authored “Medical Bills: Everything You Need to Know About Your Rights.” 

“Medical bills are very confusing and knowing how to read them and use your rights can mean saving hundreds or thousands of dollars,” said Patricia Kelmar, senior director of healthcare campaigns for U.S. PIRG Education Fund.

“The system shouldn’t be and doesn’t need to be this complex. However, it is. We hear from so many people burdened with medical bills, so we want to make sure patients have the information they need.”

How you can tackle these issues

PIRG and Catalyst’s guide aims to assist anyone, whether they have health insurance or not, to prevent unnecessary charges, tackle billing errors, and deal with debt collectors.

Medical bills that are too high or illegal are discussed in the guide, as well as how to navigate emergency care, scheduled hospital care, and federal and state protections against what are known as "surprise medical bills."

ConsumerAffairs recently covered some of the options that consumers have in these situations but wanted to get Kelmar’s personal take on what we could add to that list. Here are the four tips she gave us that are outlined in the Guide:

• Always ask "are you in my insurance network" - Never ask "Do you take my insurance"  -- these are very different questions. 
• If you are paying cash, you have the right to a Good Faith Estimate, and you can dispute any bill that is $400 or higher than the GFE.
• The No Surprises Act protects you from most out-of-network charges at your in-network hospital - but some healthcare providers can ask you to waive your rights. Why you shouldn't sign the "surprise billing protection form" and who can not ask you to sign one.
• Never put your medical bills on your credit card -- unless you are absolutely sure you will pay off your entire credit card bill when you receive it.

The threat of small claims court can work magic

Depending on where you live, hiring an attorney can cost you as much as $400 an hour. And by the time they file claims and go toe-to-toe with the legal beagles at a healthcare billing agent, you might as well just pay off your medical bill and be done with it.

However, there is always small claims court, an effective and inexpensive option for the patient. Going that route takes a little work and, for some, can be a bit intimidating, but small claims courts were created for the little guy and are run by public servants who will do their best to help out. 

Marshall Allen, the author of, "Never Pay the First Bill: And Other Ways to Fight the Health Care System and Win," says that disgruntled consumers need to take of first things first and that is sending the bogus biller a warning letter, explaining the problem and your intent to sue.

In advice Allen gave to “Don,” a client, he said to send that letter via certified mail. “In the event that my request is not accepted,” Don’s letter said, “you can expect me to proceed with my small claims filing.”

Don didn’t stop there, though. He took another tip from the Never Pay the First Bill playbook and copied the presidents, CEOs, and chief legal officers at both Anthem and Labcorp. “The goal is to get the problem resolved by bringing it to the attention of decision-makers,” Allen said.

It worked! Labcorp and Anthem corrected the problem within a week – and he never had to step inside a small claims courtroom, even though he was prepared to.

“Obviously they didn’t want the headache,” Don said. “I’m nothing to them but about $4,000 went away just like that.”